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FinanceMore Africa NewsAlgeria: GTH agrees to cede to VEON Ltd its remaining shares in Djezzy for $ 585 million

August 21, 2019by myles

The Egyptian company Global Telecom Holding (GTH) has agreed to sell the rest of its shares in Djezzy (Algerian mobile phone operator), including the underwater fiber optic system MedCable, to the Dutch telecom group VEON Ltd . The operation, which is valued at 70.195 billion Algerian dinars (585,334,410 USD), is part of a larger-scale procedure.

Indeed, since the end of June 2019, VEON Ltd has been seeking to acquire more than 1,997,639,608 additional shares of GTH, representing 42.31% of the company’s share. On August 18, 2019, GTH announced the approval by its board of directors of the offer presented by VEON Ltd, valued at $ 2.3 billion.

This acquisition includes, in addition to shares in Djezzy, the acquisition of shares in the Pakistani mobile operator Jazz for Rs. 313.335 billion (US $ 1,955,335,734); in the Banglalink Bangladeshi mobile operator for 24.916 billion taka (294,968,066 USD) and shares in Mobilink Bank for 14.741 billion Pakistan rupees (91,989,736 USD).

Upon completion of this acquisition of additional shares of GTH, VEON Ltd is expected to hold nearly 98% of the company in which it is already a shareholder.

VEON Ltd intends, through this asset acquisition transaction, to continue the overall restructuring of GTH announced on June 26, 2019, notably by proceeding with the exit of GTH from the Cairo Stock Exchange.

Source: Agence Ecofin